BUSA 2106 EXAM 1 VERIFIED STUDY GUIDE
law - Answers - that which must be obeyed and followed by citizens, subject to
sanctions or legal consequences; a body of rules action or conduct prescribed by
controlling authority and having binding legal force
lawyer - Answers - a person who practices or studies law; an attorney or a counselor
ethics - Answers - a set of moral principles or values that governs the conduct of an
individual or a group
code of conduct - Answers - an agreement on rules of behavior for the members of that
group or organization
corporate social responsibility - Answers - self-regulating business model that helps a
company be socially accountable - to itself, its stakeholders, and the public
Maximization of Profits theory (also called Shareholder Interest theory) - Answers - a
theory of social responsibility stating a corporate owes a duty to take actions that
maximize profits for shareholders
stakeholder interest theory - Answers - a theory of social responsibility stating that a
corporation must consider the effects that its actions have on persons other than the
shareholders
corporate citizenship theory - Answers - a theory of social responsibility stating that a
business has a responsibility to do good
english common law - Answers - law developed by judges who issue their opinions
when deciding a case; the principles announced in these cases became precedent for
deciding similar cases in the future
plaintiff - Answers - a party who files a complaint that initiates a lawsuit
defendent - Answers - person being sued
common law/case law - Answers - body of law derived from judicial decisions of courts
and similar tribunals; arises as precedent
precedent - Answers - a rule of law established in a court decision; lower courts must
follow the precedent established by higher courts
state trial court - Answers - court of general jurisdiction; may hear cases of all kinds
law - Answers - that which must be obeyed and followed by citizens, subject to
sanctions or legal consequences; a body of rules action or conduct prescribed by
controlling authority and having binding legal force
lawyer - Answers - a person who practices or studies law; an attorney or a counselor
ethics - Answers - a set of moral principles or values that governs the conduct of an
individual or a group
code of conduct - Answers - an agreement on rules of behavior for the members of that
group or organization
corporate social responsibility - Answers - self-regulating business model that helps a
company be socially accountable - to itself, its stakeholders, and the public
Maximization of Profits theory (also called Shareholder Interest theory) - Answers - a
theory of social responsibility stating a corporate owes a duty to take actions that
maximize profits for shareholders
stakeholder interest theory - Answers - a theory of social responsibility stating that a
corporation must consider the effects that its actions have on persons other than the
shareholders
corporate citizenship theory - Answers - a theory of social responsibility stating that a
business has a responsibility to do good
english common law - Answers - law developed by judges who issue their opinions
when deciding a case; the principles announced in these cases became precedent for
deciding similar cases in the future
plaintiff - Answers - a party who files a complaint that initiates a lawsuit
defendent - Answers - person being sued
common law/case law - Answers - body of law derived from judicial decisions of courts
and similar tribunals; arises as precedent
precedent - Answers - a rule of law established in a court decision; lower courts must
follow the precedent established by higher courts
state trial court - Answers - court of general jurisdiction; may hear cases of all kinds
